Are Municipalities Spending Wisely?

Welcome to Municipal Affairs.

Today we’re diving into one of the most important—yet often overlooked—questions in local governance: Are we getting good value for our municipal tax dollars?

A new report from the Fraser Institute has brought this question into sharp focus. The study, The Expanding Finances of Local Governments in Canada, reveals that municipal government spending across the country has hit near-record levels in recent years.

Between 2000 and 2023, inflation-adjusted per-person municipal spending increased by over 25%, peaking at nearly $6,000 per resident in 2021. Revenues, too—driven by property taxes and intergovernmental transfers—rose by more than 33% over the same period.

So with all this money flowing into and out of city halls across Canada, we have to ask: Has the quality of local services kept pace?

Is public transit more reliable? Has homelessness declined? Are our streets safer? And are taxpayers truly getting what they’re paying for?

At the same time, while municipalities have been spending more, they’ve had the slowest growth rate of any level of government over the past decade. So what’s going on behind the numbers?

Today, we’re joined by Jake Fuss, Director of Fiscal Studies at the Fraser Institute. Jake is here to unpack the findings, challenge prevailing narratives about municipal finances, and help us better understand what’s driving local government growth—and what it means for taxpayers, policymakers, and the future of our cities.

If you’ve ever looked at your property tax bill and wondered, “Where is all this money going?” — this is the episode for you.

Stay with us. As this is Municipal Affairs.

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